Over 12,000 People were affected by the failure of three Major Investment Schemes: First Guardian, Shield Master Fund, and Australian Fiduciaries. These collapses have led to total losses of up to $ 1.2 billion.
The Australian Securities and Investments Commission (Asic) Stopped Investment in Shield in Februry 2024 and Froze The Assets of First Guardian in February 2025. This Followed the Blocking of Access to Funds for Most Investors in May the Previous Year.
First Guardian, Which Had $ 505 Million for About 6,000 Investors, Claimed to Focus on Shares, Property, Private Equity, and Fixed Inome. LIQUIDATORS FOUNT THAT NEARLY $ 70 MILLION WAS PUT INTO BUSINESES Connected to the Directors, and over $ 240 million was invested overseas. One Director Allegedly used Nearly $ 550,000 of Company Money To Buy A Lamborghini.
Investors Were Warned That They Might Only Recover Fraction of the $ 446 Million Owed, and Not Until 2027 at The Earliest. LIQUIDATORS CONCLUDED THAT Directors Likely Breached Their Duties, Overvalued Investments, and Poorly Recorded Funds.
The Balance Sheet for First Guardian in May 2024 Showed $ 525 million, but much of this Amount Was Questionable, According to Receivers For Shield. They noted that the value of investments in a real estate Fund was overstated, and nearly $ 7 million was spent on a former director’s director expense. Sub -investors might not see their money back for over two years.
How do People End Up in Risky Funds? Many Investors Switched to Superannuation Products That Allowed Them to Invest in First Guardian Or Shield, Offen influenced by Financial Advisers and Cold Calls. ASIC HIGHLIGHTS CONCERNS OVER SALESPEOPLE PRESSURING CUSTOMERS INTO CERTAIN PRODUCTS. Red Flags Include Cold Calls, High-Pressure Sales Tactics, and offers Like Free Health checks for superannuation.
Asic’s Deputy Chair Sarah Court Advises, “If you feel unsure or pressured, Just Hang Up.”
Superannuation Funds are Strictly Regulated, and Risky Investments are not found. Xavier O’Halloran, Ceo of Super Consumers Australia, Notes That Nearly 15 Million of the 18 million accounts in Australia Are in Mysuper Products, Which Did Not Invest in the Failed Schemes. MySuper Products Are Diversified, Meaning They Don’t Rely on A Single Investment or Asset Class.
Sub People Invest in Less Regulated Options, particularly Through Self-Managed Super Funds. Asic has warned about Growing Concerns That Salespeople Are Pushing People To Switch From Safe Investments Into Risky Schemes.
If you’re Worried About Your Super, Phil Anderson, General Manager at The Financial Advice Association Australia, Suggests Researching Your Investments and Discussing Your Concerns with Financial Advisers. He Says, “Don’t Rush into Anything. Challenge Your Adviser About Thy Their Recommendation Is Right for You, and Ask About The Track Record of these invest in investment.”
Investors Can Also Sp Pread ES Superannuation Across Different Investments to Redta Risk.
